Assets Liabilities

Accounts payable 25,000

Cash 8, 000 Bank overdrafts 1,500

Accounts receivables 10, 000 Long term loans 40,000

Inventory 10, 000 Total liabilities 66,500

Property, Plant and Equipment 100, 000

Share capital 35,000

Retained earnings 26, 500

Total Assets 128, 000Total Liabilities and SE 128, 000

You have the following information from the balance sheet of Company X as at 30 June 2018.

Calculate liquid ratio.